[The Cash Broker]

..

[FUNd]

Been having a couple of deals declined for very vague "credit" reasons. I am very suspicious because both cases have very high avg deposits (700K/mo), virtually zero NSFs and healthy balances, and credit over 680+ for both guarantors. These were sent to both MCA firms and term lenders with gross sales rising year after year.

Are small ISOs more vulnerable to getting declined, left out in the cold, backdoored by lenders when it comes to big files (500K/mo+)? And if so, is there any defense against this or should I just concentrate on smaller files where there's less chance of the lender being greedy?

Yes. If you are a small ISO, I would sign up with an agency to have the ability to run credit yourself. You need a clean background to qualify, and the price to run a report is very reasonable. This way you are holding the cards when someone tells you that a decline is for credit reasons. Without this information, lenders can tell you anything, and you have no ammunition to defend yourself. It is up to you to protect your client and yourself against backdooring, because, yes, some lenders will try and steal your client and your renewals. Happens everyday. I have learned the hard way and now have very strict controls in place which has helped me catch the slicksters trying to take food off of my table.

[J.Celifarco]

Been having a couple of deals declined for very vague "credit" reasons. I am very suspicious because both cases have very high avg deposits (700K/mo), virtually zero NSFs and healthy balances, and credit over 680+ for both guarantors. These were sent to both MCA firms and term lenders with gross sales rising year after year.

Are small ISOs more vulnerable to getting declined, left out in the cold, backdoored by lenders when it comes to big files (500K/mo+)? And if so, is there any defense against this or should I just concentrate on smaller files where there's less chance of the lender being greedy?

Most of the big A paper lenders are not going to back door you on a deal and risk their reputation. Yes a 500k deal is huge to you but for most of these companies it just not big enough for them to take a risk like that. If you are running into these problems I would ask the banks for clarification on the decline as well as getting a copy of the underwriting guidelines from them so you can get a better understanding of how they make decisions on deals. Build relationships with the banks you work with this way when things like this come up you can easily get someone on the phone and get answers

[FUNd]

Most of the big A paper lenders are not going to back door you on a deal and risk their reputation. Yes a 500k deal is huge to you but for most of these companies it just not big enough for them to take a risk like that. If you are running into these problems I would ask the banks for clarification on the decline as well as getting a copy of the underwriting guidelines from them so you can get a better understanding of how they make decisions on deals. Build relationships with the banks you work with this way when things like this come up you can easily get someone on the phone and get answers

I disagree. I caught one we all know with their hand in the cookie jar, and cut ties immediately. Don't say it doesn't happen, because it does.

[J.Celifarco]

I disagree. I caught one we all know with their hand in the cookie jar, and cut ties immediately. Don't say it doesn't happen, because it does.

wow, I believe you I just find that surprising that any of the BIG NAME COMPANIES would risk it. Doesn't seem like the up side is worth the risk to their reputation. I will refine my statement to MOSt wont

[FUNd]

wow, I believe you I just find that surprising that any of the BIG NAME COMPANIES would risk it. Doesn't seem like the up side is worth the risk to their reputation. I will refine my statement to MOSt wont

Word.

[Michael I]

I disagree. I caught one we all know with their hand in the cookie jar, and cut ties immediately. Don't say it doesn't happen, because it does.

all day every day . i have caught ones red handed and had proof and all . cant post it here because they sent me money (not full commission ) after i threatened to sue and take it public .

[TheShitzuofMCA]

Took a course on credit, by law anytime someone's credit is pulled the owner/merchant is entitled to a copy. If the owner/merchant preferably calls and requests a copy by law the company that pulled the credit needs to provide you with one. My two cents.

[Chambo]

wow, I believe you I just find that surprising that any of the BIG NAME COMPANIES would risk it. Doesn't seem like the up side is worth the risk to their reputation. I will refine my statement to MOSt wont

they do...more than you know. I would say 90% of all funds pass off their declines to someone else

[J.Celifarco]

they do...more than you know. I would say 90% of all funds pass off their declines to someone else

Either I am oblivious to it (which I doubt) or really lucky because I have not come across it on the files I work

[Chambo]

Either I am oblivious to it (which I doubt) or really lucky because I have not come across it on the files I work

Johnny, it used to happen right under our noses when we worked together....remember those "spreadsheets"?

[FUNd]

Johnny, it used to happen right under our noses when we worked together....remember those "spreadsheets"?

This is getting good...

[The Cash Broker]

Thank you everyone for the feedback and advice. The support does mean something, with me being a lurker and had noticed a lot of people getting flamed for asking advice (on simple questions, I admit)

I will say that we've managed to get a solid approval for a bigger amount/longer terms/weekly payment from another excellent term lender than his current MCA company which is seeking renewal despite these obstacles. So perhaps there might just be a good ending to the story after all.

[J.Celifarco]

Johnny, it used to happen right under our noses when we worked together....remember those "spreadsheets"?

Chambo, that was a long time ago the **** that went on then doesn't fly today. Also I dont know what anything was back then.
What I do know is I have never seen it on a file of mine. I dont doubt shady stuff goes on and I know when people are caught it is on this forum in no time. I just think the stuff that went on 5 or 6 years ago cant go on today it is a different much more transparent industry. Still not perfect but compared to the wild west that it was back then we have come a long way

[isaacdstern]

90 percent of funders back door deals...in some cases it's from the company itself and in other cases it's the employees of that company stealing the files......

[J.Celifarco]

90 percent of funders back door deals...in some cases it's from the company itself and in other cases it's the employees of that company stealing the files......

If that is a real number that is pretty disgusting

[AndyYSCISOdept]

This thread isn't exactly a ringing endorsement now is it. I do agree that with places like the forum, if you're going to do some unsanctioned behavior a la "Back-dooring" you better pray you don't get caught

[FUNd]

This thread isn't exactly a ringing endorsement now is it. I do agree that with places like the forum, if you're going to do some unsanctioned behavior a la "Back-dooring" you better pray you don't get caught

If someone does it to me, they will be caught.

[iso@wallfunding]

So what is worse, a backdooring A funder, or a honest C-D, 3rd, 4th position funder?

[Scott Williams]

I feel like it happens more with crooked employees then a whole company policy. Same thing used to happen in the mortgage industry. A loan officer would order title from a title company and then a crooked title company employee would send that name and number over to another loan officer. Its like a trigger lead for them.

[FUNd]

So what is worse, a backdooring A funder, or a honest C-D, 3rd, 4th position funder?

Anybody that steals an ISO's hard work and marketing dollars is a piece of **** that deserves to be run over by a bus.

[TheShitzuofMCA]

Working for funding companies I can say I have worked for one that promoted it. Would let outside ISO they are in business with cherry pick deals from their data base. They get the deals back and pay reduced commissions win win for them. I think its sleazy, I work for a company that takes its outside submissions very seriously. They don't mix internal with outside submissions and if caught they would prosecute the employee. Its so much nicer to work for a classy organization and I think most ISO/brokers are not stupid.

[J.Celifarco]

So what is worse, a backdooring A funder, or a honest C-D, 3rd, 4th position funder?

Equally bad for different reasons.

[J.Celifarco]

I feel like it happens more with crooked employees then a whole company policy. Same thing used to happen in the mortgage industry. A loan officer would order title from a title company and then a crooked title company employee would send that name and number over to another loan officer. Its like a trigger lead for them.

This would make more sense to me then whole companies risking reputation, but maybe im wrong

[Chambo]

Anybody that steals an ISO's hard work and marketing dollars is a piece of **** that deserves to be run over by a bus.

Most of these funds just look at ISO's as their marketing expense anyway.